- Weak export demand weighs on domestic prices
- Major buyer remains away amid operational disruptions
Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices fell by INR 1,400/t ($15/t) w-o-w to INR 119,600/t ($1,256/t) exw-Jajpur on 6 August 2026. Prices fell as earlier higher offers could not find much acceptance in the market, and sellers reduced offers in order to keep operations running.
Deals for around 1,500 t were recorded last week in the price bracket of INR 119,000-122,000/t ($1,250-1,281/t) exw.
Low silicon and low phosphorus ferro chrome prices also fell by INR 500/t ($5/t) and INR 2,300/t ($24/t) w-o-w to INR 125,000/t ($1,313/t) and INR 127,500/t ($1,339/t) exw-Jajpur, respectively. However, low carbon ferro chrome prices were unchanged w-o-w at INR 242,000/t ($2,541/t) exw-Durgapur.
Market summary (30 July – 5 August)
Market softens on weak demand, ample supply: India’s domestic ferro chrome prices declined during the week, primarily weighed down by sluggish demand and comfortable supply availability. Export demand remained weak as a slight appreciation in the Indian rupee reduced export competitiveness, resulting in lower realisations and limited buying interest from overseas customers. While China’s high-carbon ferro chrome prices held steady w-o-w at 94 cents/lb CNF, prices for Japan and South Korea eased to 100 cents/lb and 99 cents/lb CNF, respectively, reflecting softer regional demand.
On the supply side, production remained healthy, ensuring adequate material availability in the domestic market. Notably, India’s largest integrated ferro chrome producer, IMFA, reported robust operational performance in Q1FY’27, with ferro chrome output increasing 22% y-o-y to 80,690 t from 65,929 t in the corresponding period last year.
Domestic buyers also remained cautious, with resistance to higher offers prompting producers to revise earlier offer levels of around INR 121,000/t ($1,271/t) exw downward to secure deals and maintain plant operations. Adding to the subdued sentiment, a major domestic consumer procuring around 4,000-5,000 t monthly informed BigMint that it had not floated fresh inquiries this month due to limited warehouse space during the monsoon season and operational disruptions at its facility. Consequently, muted buying activity and ample availability continued to exert downward pressure on domestic ferro chrome prices.
China prices steady despite weak demand: China’s ferro chrome market remained largely stable over the week, although spot prices in some regions edged lower due to weak demand and easing raw material costs. Softer chrome ore prices and the completion of July procurement by major stainless steel mills reduced market confidence. Seasonal weakness in the stainless steel sector also limited fresh buying, with most mills relying on existing inventories instead of placing new orders. As a result, trading activity remained subdued.
In the raw material market, chrome ore prices continued to face pressure amid slow inventory drawdowns at ports and weaker overseas sentiment. Although suppliers resisted steep price cuts, lower purchasing volumes kept the market under pressure.
Higher input costs boost stainless steel prices: Prices of 304 grade stainless steel HRCs edged up by INR 3,000/t ($32/t) w-o-w to INR 218,000/t ($2,290/t) exw-Mumbai. Prices were supported by higher alloy costs, tight raw material availability, and improving buying activity ahead of the festive season. Rising nickel and ferro molybdenum prices pushed up production costs, while limited availability of 316-grade scrap further strengthened sentiment. Prices of both flat and long products increased amid healthy domestic demand.
Meanwhile, China’s stainless steel market remained under pressure due to weak seasonal demand, bearish macroeconomic sentiment, and expectations of higher production in August, although firm mill offers kept spot prices stable. In contrast, Taiwanese mills raised August prices, citing higher nickel costs, freight rates, and currency weakness. Going forward, the Indian market is expected to remain firm, supported by festive demand and elevated input costs, while global market trends will continue to influence price direction.
Outlook
India’s ferro chrome market is likely to remain under pressure in the coming week amid ample supply and subdued export demand. However, improving stainless steel demand ahead of the festive season may lend some support, while Chinese market trends and domestic procurement will remain key price drivers.
Leave a Reply